December 3, 2009 
This entry was posted on Thursday, December 3rd, 2009 at 10:32 pm and is filed under Accounting, Buisness Taxes, Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Business must always look for ways to save money. The more successful they are at saving money the more successful the business is. With the many layoffs today one way to save money is a payroll tax credit. The IRS is offering help for businesses to be able to claim credit for the Cobra medical premiums that they are paying for former employees. Form 941 is the Employers Quarterly Federal Tax Return which the IRS sent out to two million employers in March 09. They are making every effort to help businesses with this change.
Any employee with health insurance at the time they lost their job only have to pay 35% of the cost of Cobra charges. The business must treat this 35% payment as full payment and the company can claim the 65% of the Cobra cost on their payroll tax return.